XLF - S&P sees global debt-to-GDP surging to 2009 crisis levels in 2020

S&P Global Ratings sees global debt, as a percentage of GDP, swelling to a record 265% this year and insolvencies and defaults rising to levels not seen since the 2009 crisis.A near-term crisis, though, is unlikely, given the expected economic recovery, a COVID-19 vaccine by mid-2021, favorable financing conditions, and sovereign, corporate and household spending and borrowing behaviors, according to a report by S&P research."The heavier corporate debt will delay the recovery of credit metrics beyond 2022 for the hardest hit sectors (such as airlines, leisure and oil and gas)," they wrote.Defaults are poised to rise substantially as government support measures taper.  Among U.S. corporate borrowers, default rates could double by mid-2021 to 12.5%.S&P projects that global corporate debt-to-GDP will surge 15% to 103% in 2020 before declining steadily to 97% by 2023.Expects banks globally "to be largely able to continue lending given most major banks' ability to absorb credit

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S&P sees global debt-to-GDP surging to 2009 crisis levels in 2020